Fashion giant Next is closing in on a takeover of Fat Face in a deal worth more than £100m, according to reports.

Fat Face store sign

Next is said to be putting “the finishing touches” to an acquisition of Fat Face, just three years after it was taken over by its lenders, as reported by Sky News.

According to sources, a deal could be announced as soon as later this week.

The owners of Fat Face are also reported to have appointed the independent financial advisory group Rothschild to “advise on strategic options” in May last year.

The news comes after Next recently bought out private equity firm Warburg Pincus’ 34% stake in Reiss, upping its total stake to 72%.

Last week, Fat Face posted a 15% increase in total sales for the 52 weeks to May 27, 2023, to reach a total of £282m.

Fat Face also recorded underlying EBITDA of £26m for the period, up 3% year on year, while profit after tax was also up from £5.8m to £17.3m.

Next and Fat Face both declined to comment.